Dollar Index Lingers Around Five-Month Low; Set For Yearly Loss Of 2%

Published on Dec 27, 2023 10:44

The dollar index continues to linger around a five month low tracking falling treasury yields overseas on rising expectations that the Federal Reserve will start cutting interest rates from the first quarter of 2024. The dollar index was down marginally on the day at 101.15, amid thin trading volumes after Christmas. The index has fallen from a 20-year high of 114.78 on September 28 2022 and is set for a yearly loss of around 2%. Data from the Commerce Department last week showed the annual rate of consumer price growth decelerated to 2.6% in November from a downwardly revised 2.9% in October. Among the basket currencies, EURUSD was at a four and half month high of $1.1081 while GBPUSD stayed range bound at $1.2737.